Forklift Market Trends 2025: Electric, Automation & Prices

The forklift industry is undergoing its most significant structural shift in decades. Electrification is moving from a niche preference to a mainstream default, autonomous vehicles are graduating from pilots to production deployments, and regulatory pressure is forcing accelerated fleet turnover in key US markets. Here is what buyers, fleet managers, and operators need to know about where the market stands heading into 2025.

Trend Snapshot: Key Numbers

• Global forklift market CAGR: 6–8% projected through 2030
• Autonomous forklift / AGV market: ~$2.7B (2024) → $5B+ by 2032 (~9% CAGR)
• Electric forklift share of new unit sales: Approaching 50% in the US; over 65% in Western Europe
• Lithium-ion adoption rate: Battery cost falling ~10–15% per year; penetration of new electric sales grew from under 10% in 2020 to over 35% in 2024
• US e-commerce warehouse growth: Over 400 million sq ft of new fulfillment space added in 2022–2024, driving Class II order picker demand

Electrification: The Defining Shift

The single largest trend reshaping the US forklift market is the accelerating transition from internal combustion (IC) to electric trucks, and within electric, from lead-acid to lithium-ion batteries.

In 2020, electric trucks represented roughly 35–40% of new forklift sales in the US. By 2024, that share was approaching 50% — and in some segments (Class II narrow-aisle, Class III walkie), electric has been the overwhelming majority for years. The shift is now reaching Class V counterbalanced trucks, traditionally the stronghold of LPG.

Three forces are driving electrification:

1. Lithium-ion economics: As battery pack costs fall toward and below $200/kWh, the upfront premium for lithium-ion is shrinking to the point where TCO parity with IC is achieved within 3–4 years even in single-shift operations.
2. Zero-emission facility mandates: Food-grade warehouses, pharmaceutical distribution, and third-party logistics providers operating in LEED-certified buildings are requiring electric fleets.
3. California and CARB: California’s Air Resources Board has phased restrictions on high-emission IC forklifts, with requirements that accelerate retirement of older diesel and LPG units. States that follow CARB standards — including New York, Massachusetts, Washington, and Oregon — are expected to adopt similar rules.

Autonomous Forklifts and AGVs: From Pilot to Production

Autonomous forklifts and automated guided vehicles (AGVs) have moved from proof-of-concept installations to production deployments at scale. The market for automated material handling robots was valued at approximately $2.7 billion in 2024 and is projected to reach $5 billion or more by 2032, growing at roughly 9% CAGR.

Key developments in 2024–2025:

• Major OEM involvement: Toyota, Jungheinrich, and Hyster-Yale have all acquired or partnered with AMR/AGV companies, signaling that autonomous vehicles are becoming a core product line rather than an accessory.
• Deployment environments: Large e-commerce fulfillment centers (100,000+ sq ft) and automotive manufacturing plants remain the primary adopters. Penetration in mid-size warehouses is accelerating as software complexity and integration costs decrease.
• Autonomous reach trucks: Several manufacturers have released production-grade autonomous reach trucks that operate in standard racking configurations — not just fixed-path floor-level AGVs.
• Human-robot collaboration: The most common 2025 deployment model pairs autonomous trucks for repetitive horizontal transport with human-operated forklifts for exception handling and complex picks.

Labor availability continues to be a primary driver: US warehouse labor markets remain tight, and autonomous forklifts are increasingly positioned as a labor supplement rather than replacement.

E-Commerce Driving Order Picker Demand

Over 400 million square feet of e-commerce fulfillment space has come online in the US since 2022. That wave of new construction has created sustained demand for Class II order pickers — the machines that lift operators to height for each-unit picking — and for Class II reach trucks that maximize cubic utilization in tall-rack facilities.

Order picker unit demand grew roughly 15–20% in 2023–2024. Lead times for Class II equipment from major manufacturers stretched to 6–12 months at peak demand; they have since normalized to 4–8 weeks for most models as supply chains stabilized.

Pricing: Stabilization After Post-Pandemic Spike

Forklift list prices surged 15–30% in 2022–2023 as steel costs rose and component shortages (semiconductors, hydraulic components) constrained production. By late 2024, prices had stabilized and dealer inventories had rebuilt. In 2025:

• New equipment: Modest price increases of 2–4% annually as manufacturers reset after the post-pandemic cycle.
• Used equipment: Values softened 8–15% from 2023 peaks as rental fleet returns and trade-ins increased supply.
• Rental rates: Largely stable; the dramatic rate increases of 2022 have not continued.

Buyers who held off during the 2022–2023 shortage are in a meaningfully better negotiating position in 2025 — particularly for used equipment and short-term rentals.

What to Watch in the Next 12 Months

• CARB enforcement ramp-up and potential federal EPA action on industrial truck emissions will be the key regulatory watch item for fleet managers outside California.
• Lithium-ion price floor: Battery costs are expected to approach $180/kWh in 2025–2026, which would make lithium-ion competitive with lead-acid even on upfront cost for larger packs.
• Autonomous vehicle certification standards: Industry groups and OSHA are developing updated safety standards for autonomous forklifts operating alongside human workers — the regulatory framework will significantly shape adoption speed.

For guidance on whether to buy, rent, or lease given current market conditions, see our buy vs. rent vs. lease analysis. Use our forklift selector to find equipment matched to your specific application and get competitive quotes from dealers in your region.